Company News Feature

Interesting New Ortho Marketing Company Formed

Robin Young • Fri, October 20th, 2017

The world of marketing to patients and physicians is changing dramatically.

Two-thirds of all American adults, for example, engage with Facebook. Forty percent get news there. The process of communicating products, features and benefits is no longer about “awareness.” It is, instead, about engagement and community building. These new concepts are the new sales drivers.

This shift in media consuming habits has major ramifications for orthopedics companies.

To help orthopedic companies navigate this new world, a new marketing company has been formed by two orthopedic industry veterans—Michael Spiegler and Gennady Gomez.

Say “Hello” to MPM

Medical and Pharmaceutical Marketing (MPM), located in New York City, is a new generation of marketing service firms—not only fluent in the language of digital media but is also firmly grounded in the fundamentals of market research and business intelligence.

Combining years of sales and marketing experience, both in the U.S. and abroad, founders Michael Spiegler and Gennady Gomez are well-versed in working alongside orthopedic companies to hone, refine, and expand critical product messaging efforts.

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Orsinger Out at DePuy Synthes. J&J Reorganizes Device Business

Walter Eisner • Fri, May 8th, 2015

Michel Orsinger is out as head of Johnson & Johnson's (J&J) DePuy Synthes orthopedics business following a reorganization of J&J’s medical device businesses.

Single Medical Devices Group

The company is creating a single Medical Devices Group by integrating its surgery and orthopedics business under the leadership of Gary Pruden, head of the surgery business. Pruden will become worldwide chairman, Johnson & Johnson Medical Devices. Orsinger told the company of his intention to pursue other opportunities outside J&J.

Orsinger was CEO of Synthes, Inc. when he helped arrange for J&J's $21.3 billion acquisition of Synthes in 2011. He reportedly received a $51.9 million parachute in the transaction. He then became head of J&J's combined DePuy Synthes orthopedics business.

Gary Pruden

Pruden is a sales guy, starting his career as a sales representative for Baxter Edwards. He joined J&J in 1985 with Janssen Pharmaceutical, Inc. in New Jersey and held a number of senior positions in sales, marketing, and strategic account management. In 2001, he was named vice president of marketing for the primary care franchise and was responsible for establishing significant growth for the businesses. He then became VP of sales and marketing for the CNS Franchise in 2003, helping to successfully launch new brands and establish significant new growth.

In April 2004, he was appointed president of Janssen-Ortho Inc., a brand-name pharmaceutical company headquartered in Toronto, Canada. He also functioned as the company’s chief operating officer, overseeing all operations in Canada. He led the company through several lifecycle and patent expiries, while enabling Janssen-Ortho to become the fastest growing large pharmaceutical company in Canada in 2004.

Pruden became J&J's company group chairman and worldwide franchise chairman for Ethicon and a member of the Medical Device and Diagnostics Group Operating Committee in 2009. In 2012 he became worldwide chairman of J&J’s Global Surgery Group.

J&J Vice President, Global Media Relations, Ernie Knewitz informed OTW of the reorganization on May 7, 2015, following our inquiry about reports of Orsinger being arrested in Pennsylvania for an alleged assault of a family member.

Orchid Breaks Ground in India

Elizabeth Hofheinz, M.P.H., M.Ed. • Sat, June 21st, 2014

Orchid Orthopedic Solutions has announced that it will be offering expertise in machining and precision engineering at its new location in Pune, India. According to the company, Orchid India currently offers orthopedic, trauma and spine components machining and are expanding to include all the machining capabilities required to support customers in the fields of orthopedic, spinal and dental with top notch quality and service.

The new manufacturing site—which broke ground on May 20, 2014—will be 28, 400 square feet and plans to service the Asian market as well as global customers looking for additional manufacturing options. The legal name for the new entity is Orchid India Medisolutions Private Ltd.

Jorge M. Ramos, chief administrative officer and Joe Zuzula, VP of sales and marketing were there to participate in the ceremony along with employees and local dignitaries.

“We are very proud of all the work our Asia team performed to make this dream a reality. Our customers are just as excited as we are to move into a new facility, ” said Ramos in the June 17, 2014 news release.

Asked why Pune was a good choice, Ramos told OTW, “Pune has an attractive manufacturing infrastructure that will allow us to grow quickly. Pune is about three hours east of Mumbai which offers products and people easy access to the rest of the world.”

As for the timing, Ramos commented to OTW, “The combination of a maturing market in Asia and the limited number of world-class medical device contract manufacturers in the region make this the right time to move forward.”

He added, “We expect to start moving in before the end of 2014 and be fully validated in Q1-15. The promise of a facility in India has been well received by our traditional customers and has created a spike in demand from local OEMs. We are in the process of taking orders for the new facility which will initially focus on machined components for orthopedics, trauma, spinal, dental, and endoscopy.”

NuVasive Launches Pediatric Spinal Deformity Podcast

Elizabeth Hofheinz, M.P.H., M.Ed. • Tue, May 30th, 2017

To help advance care for the littlest orthopedic patients, the spine company NuVasive, Inc. recently announced the launch of a monthly podcast, MAGEC Matters, featuring interviews with leading pediatric deformity surgeons.

"At NuVasive, we are not only passionate about the world-class innovation we are bringing to market to help improve pediatric spinal deformity, but we're also passionate about the education and research that is necessary to provide surgeons with the information they need to advance the care options available to pediatric patients," said Jason Hannon, NuVasive's president and chief operating officer, in the company’s May 2, 2017 news release.

"We've made tremendous investments in building a comprehensive pediatric deformity portfolio with our MAGEC system, RELINE posterior fixation platform and PRECICE limb lengthening system. By supporting events such as EPOSNA (Pediatric Orthopaedic Society of North America), we are able to connect surgeons from around the world and help improve the lives of children."

Jason Hannon told OTW, “The idea of a MAGEC focused podcast came from collaboration between our surgeon partners, and our marketing team. We discussed how to best share the latest and greatest information regarding our MAGEC system in an easily accessible way, while using a modern media format. The launch of our podcast series reflects our continued commitment to support the educational and aspirational goals of our surgeons, providing new tools to bring awareness of innovative technology to help more patients. Our ‘MAGEC Matters’ podcast—available on iTunes or SoundCloud—is designed for the medical community, but also benefits our sales team, patients and their families.”

Amedica Partners With Chinese Orthopedic Company

Elizabeth Hofheinz, M.P.H., M.Ed. • Thu, April 28th, 2016

Amedica Corporation has announced that it will be partnering with Shandong Weigao Orthopedic Device Company Limited, a subsidiary of Shandong Weigao Group Medical Polymer Company Limited, a medical device company in China specializing in the research and development (R&D), production and sale of spine, trauma and joint orthopedic implants.

According to the April 18, 2016 news release, “Under the distribution agreement, Weigao Orthopedic will have exclusive rights for the sale, marketing and distribution of Amedica-branded silicon nitride spinal implants in the People's Republic of China, and will abide by minimum annual purchase requirements in Year 1 of 20, 000 units, growing annually to 50, 000 units in Year 6, following regulatory clearance by the China Food and Drug Administration (CFDA). Weigao Orthopedic will leverage its expertise in acquiring CFDA clearance of medical devices, in order to accelerate Chinese clearance of Amedica's products.”

"With more than 50, 000 minimum unit sales to occur within the first two years following CFDA clearance, this agreement far surpasses total silicon nitride unit sales to-date, and marks a momentous time for Amedica, " said Dr. Sonny Bal, Chairman and Chief Executive Officer. "This partnership with Weigao Orthopedic allows us to significantly increase our global sales footprint with a large-scale distribution partner who is familiar with the Chinese regulatory landscape. Weigao Orthopedic's expertise in sales and distribution is an excellent fit for our innovative silicon nitride technology platform. We look forward to this key strategic partnership to distribute our silicon nitride technology into Asian markets that are particularly receptive to bioceramic implants."

"We are very pleased with this exclusive distributor partnership as we plan to leverage the Amedica brand to offer a truly differentiated product to our broad network of hospitals and medical units in China, " stated Mr. Gong Jianbo, Chief Executive Officer and Executive Director of Weigao Orthopedic. "We expect the combination of this technically advanced biomaterial with our well-established network to quickly gain significant market share. We also look forward to expanding our partnership beyond spine products and into hip and knee applications. Weigao Orthopedic is well positioned to facilitate the approval and commercial launch of Amedica's silicon nitride spinal fusion devices in one of the world's largest healthcare markets."

Mindray Expands Ortho Footprint in China

Walter Eisner • Thu, July 23rd, 2015

Mindray Medical International Limited, based in Shenzhen, China, has swallowed up the remaining stake in Wuhan Dragonbio for $70.2 million.

Mindray, China's largest medical equipment manufacturer acquired a majority stake in Dragonbio, a manufacturer of orthopedic products for trauma, spine and joints procedures, in 2012 for $35.5 million.

Since acquiring its majority stake, Mindray co-CEO Minghe Cheng reportedly said on July 7, 2015 that the integration has been well on track. "We are optimistic about the prospects of the orthopedic consumable market in China and have therefore decided to make Dragonbio our wholly owned subsidiary. The transaction is expected to help us manage and expand the business more efficiently and effectively through our strong capital position, large-scale operational experience and worldwide presence.”

Access to “Promising and Sizable Market”

"The orthopedic consumable market has high barriers to entry, but this deal will give us instant access to this promising and sizable market, " Cheng said in prepared remarks. "We expect to unlock the value of the acquired business through our strong capital position, large-scale operational experience and worldwide presence."

Dragonbio was founded in Wuhon, China, in 2005. Its orthopedics division sells products exclusively in China. Its 2011 revenues totaled nearly $7.7 million.

Mindray, founded in 1991, manufactures and markets patient monitoring and life support devices, in vitro diagnostics and medical imaging systems.

In addition to its facilities in and around Shenzhen, Mindray maintains 29 local sales and service offices throughout China and around the world, with North American headquarters located in Mahwah, New Jersey. The company has sales and service subsidiaries in Amsterdam, Istanbul, London, Mexico City, Moscow, Mumbai, Sao Paulo, Seattle, Toronto and Vancouver.

When Mindray bought Dragonbio's orthopedics assets in 2012, a company press release said Frost & Sullivan estimated the orthopedic market size in China to be approximately US$1.1 billion in 2010 and rapidly growing with a projected CAGR of over 18% from 2010 to 2015.

U.S. Orthopedic Presence in China

U.S. orthopedic device companies have been busy acquiring or merging with Chinese medical device companies.